Chinese stocks sink 8% on first day of trading since 23rd January, amidst coronavirus scare
Sharp drop but not shocking!
Investor’s fears were realised after traders returned to their desks after an extended holiday period. Chinese officials attempted to allay panic selling before trading resumed by injecting liquidity into the money markets.
On Sunday 2nd January 2020 – the Peoples Bank of China unveiled plans to add 150 billion yuan into the banking system to help fight against the affect the coronavirus may have on the markets. To add more angst, a Chinese manufacturing PMI reading fell in December further increasing investors concerns.
Closed for business
Two thirds of the Chinese economy is reported to be in lock down for this week. Some 24 provinces, municipalities and regions in China have instructed businesses not to resume work before 10th February at the earliest.
Economic machine
This could become a huge problem for global markets – China is BIG cog in the world economic machine. The impact on world trade is already starting to be felt by businesses around the globe.
Absolutely astonishing!
China builds a complete hospital, from scratch, to treat 1000 patients – in just 10 days!
How can China get thing done so fast, even for a monumental project like this. The country’s ability to co-ordinate and mobilise a massive building project such as this – is nothing short of astounding. China has built an entire hospital complex faster than a UK planning meeting!
European markets and U.S. futures appear to have stabilised a little in early trade. However, is this just the calm before the storm?
Don’t forget – it’s about the people
As we talk of markets, world trade, businesses and stocks – try to remember that at the blunt end of all of this are real people. People being infected with a new virus we know very little about. The coranavirus virus is killer!
Think about it for a moment, it’s not just about trade and money!